China’s aggregate financing, the broadest measure of credit supply, fell by almost 200 billion yuan (US$28 billion) from the preceding month in April, according to the data release by the central bank on Sunday. That marked the first such decline since at least 2017.
“This very weak credit growth may indicate that real interest rates remain too high for the current strength of the economy,” said Lynn Song, ING’s chief economist, Greater China. “The weekend’s data may increase the urgency to lower funding costs with an interest-rate cut.”
China to nurture stock rally by masking live foreign flows data
China to nurture stock rally by masking live foreign flows data
The rally in Hong Kong stocks will be put to test this week as some of the companies with the biggest influence on the Hang Seng Index, including Alibaba Group Holding, Tencent Holdings and Meituan, are due to report first-quarter earnings. Investors also await key China economic data for April which will be released this Friday.
Alibaba rose 1.4 per cent to HK$78.95 and Tencent added 0.4 per cent to HK$372.50, ahead of their quarterly reports due on Tuesday.
Reach Machinery, which makes transmission parts and brakes for robots and automated production lines surged 49 per cent to 75.18 yuan on the first day of trading in Shenzhen.
Other major Asian markets all retreated. Japan’s Nikkei 225 slipped 0.6 per cent, while South Korea’s Kospi eased 0.2 per cent and Australia’s S&P/ASX 200 dipped 0.1 per cent.